Politická ekonomie 2020, 68(2):194-212 | DOI: 10.18267/j.polek.1273

Příčiny odchylek nominálních kurzů od absolutní parity kupní síly v tranzitivních ekonomikách

Viktar Dudzicha
a Vysoká škola ekonomická, Fakulta financí a účetnictví, Praha, Česká republika

Causes of Deviations in Nominal Exchange Rates from Absolute Purchasing Power Parity
in Transition Economies

This paper deals with the absolute version of purchasing power parity and its applicability in transition economies. The aim of the paper is to identify and quantify deviations between nominal exchange rates and rates based on purchasing power parity. The paper specifies and analyses the theoretical causes of those deviations and focuses on the impact of prices of non-tradable goods on purchasing power parity. Parity exchange rates based on prices of tradable-only goods are then calculated for 20 transition economies. Panel regression instruments are used to analyse the influence of selected macroeconomic and institutional variables on deviations between nominal exchange rates and rates based on purchasing power parity.

Keywords: purchasing power parity, transition economies, non-tradable goods, transaction costs
JEL classification: E31, F31, P22, P24

Received: June 19, 2019; Revised: October 27, 2019; Accepted: December 12, 2019; Published: April 30, 2020  Show citation

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Dudzich, V. (2020). Causes of Deviations in Nominal Exchange Rates from Absolute Purchasing Power Parity
in Transition Economies. Politická ekonomie, 68(2), 194-212. doi: 10.18267/j.polek.1273
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